Ch 2: Modern organization theory

Question 1

Name some of the managerial problems for the mordern organization theory (1960-1980).

Answer 1

• Coping with the complexities of scale and scope
• Different products, markets, technologies and countries, determining the best structural form

Question 2

Describe the continguency theory.

Answer 2

• Open system approach
• There is no best way to organize a company
• The structure of an organization is contingent which means that structure depend on outside pressures that can be identified and analysed
• Improving organizational effectiveness instead of efficiency

Question 3

Name some contiguency factors:

Answer 3

• Environments (stable or dynamic)
• Strategy (to be as efficient as possible/to increase production outcomes/to be more Innovative or creative)
• Technology (division of labour/non-routine work, the level of specialization, autonomy)
• Size (large or small organizations)